Reference no: EM131518128
A computer company produces affordable, easy -to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh.
a. Create a table that shows the company's output, total cost, marginal cost, average cost, variable cost, and average variable cost.
b. At wat price is the zero-profit point? At what price is the shutdown point?
c. If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate your answer and show the profit or loss.
d. If the firm sells the computers for $300, is it making a profit or loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate tyour answer and show the profit or loss.
Long-term investment decisions
: Assume that the low-calorie frozen, microwavable food company from Assignments 1 and 2 wants to expand and has to make some long-term capital budgeting decision
|
What is your estimate of callahans cost of common equity
: Using the DCF approach, what is its cost of common equity? what is your estimate of Callahan's cost of common equity?
|
How much interest do the borrowers pay
: Determine the monthly payment for a thirty-year real estate loan with an annual percentage rate of 8.5% and an initial principal of $200,000.
|
Why it is important for change manager to have understanding
: Describe why it is important for change managers to have a clear, personal understanding about the pressures that lead to change.
|
Create a table that shows the company output
: Create a table that shows the company's output, total cost, marginal cost, average cost, variable cost, and average variable cost.
|
What is the value of the bond to you
: what is the value of the bond to you, given your 1e percent required rate of return.
|
Research the political and military rise of the romans
: Draft a thesis statement summarizing the factors that contributed to the power of the Roman and Mongol civilizations, supported by your research.
|
List the rights described in the first amendment
: What cases were important to freedom of speech? What Amendments led to the concept of the right to privacy
|
How much interest is paid over the life of the loan
: How much interest do the borrowers in Problem pay during the second year of the loan?
|